Only construction companies with ISO 37001 Anti-Bribery Management System (ABMS) certification will be eligible to bid for government contracts exceeding RM100 million, said Tan Sri Azam Baki.
Speaking after the launch of the 3rd National Research Conference on Governance, Integrity, and Anti-Corruption on Thursday (Sept 26), the Malaysian Anti-Corruption Commission (MACC) chief commissioner stated that this requirement will take effect in 2026 for Class G7 construction companies registered with the Construction Industry Development Board (CIDB) seeking to bid for government contracts.
Azam explained that the move aims to prevent corruption and financial leakages in government projects.
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Speaking after the launch of the 3rd National Research Conference on Governance, Integrity, and Anti-Corruption on Thursday (Sept 26), the Malaysian Anti-Corruption Commission (MACC) chief commissioner stated that this requirement will take effect in 2026 for Class G7 construction companies registered with the Construction Industry Development Board (CIDB) seeking to bid for government contracts.
Azam explained that the move aims to prevent corruption and financial leakages in government projects.
Read more at https://tinyurl.com/3kphrejb
WATCH MORE: https://thestartv.com/c/news
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NewsTranscript
00:30that is being mediated by the Ministry of Education and Languages
00:34will provide a broader perspective on the reality,
00:39weaknesses and risks that exist in the sectors that I mentioned earlier.
00:45The construction sector, for example, is a highly valued industry
00:50with a global value of 1.7 trillion dollars,
00:53which accounts for 6% of global gross domestic product.
00:58Even so, this sector contributes to the global climate change.
01:03The United Nations Environment Program, or UNEP,
01:06reports that the construction sector contributes to 37% of greenhouse gas emissions,
01:13which is among the causes of global climate uncertainty.
01:17In addition, this sector is also very vulnerable to corruption.
01:22As many as 5.1 trillion USD is expected to be donated by the construction sector by 2030,
01:30if there is no effective step taken to deal with corruption in this sector,
01:35as reported by the Royal Institution of Chartered Surveyors, or RICS,
01:41a global professional body that sets standards and qualities
01:45for land, infrastructure and construction.
01:49If the risk of corruption in the construction sector is not handled seriously,
01:56it is certain that other sectors related to it, such as the environment and economy,
02:01will also become worse.
02:03Therefore, in line with the theme raised for this hearing,
02:07which is to face the threat of corruption collectively,
02:11to give a clear message that jihad to eradicate corruption
02:17requires a joint effort and strategy.
02:20Just now you said the construction sector is one of the sectors that needs to be given.
02:25Yes, because when it comes to the construction sector,
02:30it will be closely related to other things, such as the environment.
02:34So this construction sector is one of the sectors that is identified by the world,
02:39by world researchers, where there is a lot of criticism and corruption.
02:44So this is one of the areas where my discussions with the MOF and others
02:50are also based on issues related to the construction sector.
02:54As a recent example, the National Coastal Tetrachord Cabinet,
03:00which is chaired by the Prime Minister,
03:02has agreed with the principle that companies in the next two years
03:09which is the G7 class, if I'm not mistaken,
03:12under the CIDB Regulation,
03:14need to have an ABMS or ISO 37001,
03:20which means they need to be prepared to have a plan to eradicate corruption
03:25under the CRIM certification.
03:28This shows the sincerity of the companies in the construction sector
03:32to have an understanding of corruption eradication
03:37by entering the tender under the MOF.
03:40That's one example.
03:41When will the company be ready?
03:44In the next two years,
03:46the companies that are involved need to get an ISO 37001 registration,
03:55two years in this period.
03:56After that, for projects worth one hundred million,
03:59for the time being, it is still allowed.
04:01But after two years,
04:03the companies involved in the construction sector
04:07need to have an ABMS registration.
04:10If not?
04:11If not, they may not be able to participate in the tender under the MOF.
04:16That's the condition.
04:18So they have to complete the registration with an ISO 37001.
04:25This was announced a few weeks ago.
04:28What do you think of Malaysia's situation in the construction sector?
04:32The construction sector is one of the sectors that is under our jurisdiction.
04:36Because in the construction sector,
04:38we only place contracts that are related to the government.
04:42That's what I mean.
04:43Where the construction companies
04:46take part in tenders,
04:48either at the state level or the regional level.
04:50This is one of our jurisdictions.
04:52And we also see that due to this,
04:56a lot of corruption has happened.
04:57A lot?
04:58Do you have any statistics?
04:59I don't have any statistics now.
05:01But in the past, we did issue statistics.
05:03But if you want the statistics,
05:05I have to ask my record department to issue it later.
05:08What do you think is the reason for the corruption?
05:11When it comes to projects,
05:13there are various construction projects,
05:15such as roads, buildings, etc.
05:16which involve government contracts
05:18that we have to ensure that there is corruption on both sides.
05:22But when it comes to the cost,
05:26there has been a decrease.
05:29And there are many other small and large-scale projects.